CA Governor Gavin Newsom entered into a $1 billion contract with electric bus manufacturer Build Your Dreams (BYD). BYD was tapped by LA County Metro Chair James T. Butts to invest a large amount of money into the floundering Inglewood Airport Area Chamber of Commerce (IAACC).
Despite Inglewood not having a proprietary bus line, BYD became a title sponsor of the non-profit organization back in 2018 when the chamber was facing financial difficulties related to alleged misappropriation of funds by its former executive director.
Newsom entered into a controversial contract with BYD back in March where details were not released to the public.
Newsom is weighing how to proceed after BYD missed an extended deadline to secure federal certification for the products, the Newsom administration says.
The company did not secure approval by May 31, as stipulated in the amended contract, said Brian Ferguson, spokesman for Gov. Gavin Newsom’s Office of Emergency Services. The state has not signed any extension of the deal, although that’s still a possibility, Ferguson said.
“We’re looking at what the options are available to us legally, based on what’s happened,” Ferguson said, adding that there will likely be an update in the next day or two.
It is unclear how the missed deadline will affect local hospitals Centinela Hospital Medical Center and MLK Hospital, as statistics continue to show the disproportionate amount of positive cases in the Black and Latino community, which are served by the two hospitals.